ABSTRACT
Social labelling is increasingly being used or considered as a tool for more effectively communicating about 'ethical trade'. Labelling can provide information and can act as an incentive to improve the social and environmental impact of production and trade. Existing social labels have focused particularly on labour standards in global supply chains, sometimes based around one specific issue such as child labour. Social labels are words and symbols associated with products or organisations, which seek to influence the economic decisions of one set of stakeholders by describing the impact of a business process on another group of stakeholders. The effectiveness of labels also depends on the broader institutional framework within which they operate, including: structure and governance; standards; monitoring; and marketing. Social labels impact directly on participating producers, and indirectly by influencing the behaviour of non-participating companies and shifting or reinforcing public policy.
